Negotiating IT contract rates

nightowl

Hi,

Can somebody please assist me with this. I'm an IT contractor and have been so for the last few years. I have say I really enjoy contracting I've gotten a lot of exposure to different technologies which has helped made my work days more interesting.

One thing that bothers though it's recruitment agencies and the contract rates. Say for example I'm on a daily rate contract for 280 or 350 how do I negotiate the rate with the recruitment agent so I don't end up on the losing end of the deal. Having said that I don't want to lost the contract with the client because the rate I'm asking for with the client is too high.

When dealing with recruitment agents they always tell me that the client is only willing to pay a daily rate of 280, 200 or 250. For all I know the client could be willing to pay a daily rate of 320 but the recruitment agent is trying to get a bigger slice of the pie!

I was dealing with one recruitment agent last week and I was asked what was my daily rate. I told the recruitment agent that information was confidential and she wasn't too happy with my answer. The recruitment agent informed me that I would in the future have to disclose my daily rate when applying of future contracts. I informed the recruitment agent I wasn't comfortable disclosing that information and I would like to get an idea of the rate from the client first.

I also asked recruitment was there a website that gave a general idea of contract rates for individuals with my experience. The recruitment agent said she didn't know. What's best approach for these type of negotiations.

nightowl

Anybody?

reallyrose

Hi, I'm an IT recruiter who handles contracts.

I can only really speak for myself and how I do things but I ask the contractor what they want and work with that. Most contractors have a set rate and won't be nudged on it. (Unless it's a really good job)

We'll have role on under two circumstances. We're told an "all-in rate" or we have a set margin.

All-in-rate, you pay the contractor and what's left is for you.
Set margin, you pay the contractor and stick a set % on top.

I'll always have a figure I won't go below for my margin but it's pretty small, to be honest. I'd rather have a small slice of pie than no pie at all. Some of my pie is very small pie but it's great to have.

Just set your rate. Pick a bottom figure you'll go to and stick with it.
If the recruiter says "The client can only pay €280" and your bottom line is €300, then the job isn't for you. If there's wiggle in the recruiter's margin, they will move for you.
If the limit really is €280, then they can't move and that's that.

There's nearly always wiggle for a good contractor though. Some clients just have a budget and won't budge but most will.

There's lots of salary guides online which list upper and lower contract rates for IT people. If you can't find your role, you can PM me if you like and I'll give you some figures. (no strings attached. :pac:)

Oh, and clients won't take CV's from us unless we tell them the rate for each contractor so that's why we really do need to know.

wally1990

I work in payroll for contractors and deal with all different professions including IT.


The daily rate is set by the Individual and they still stick to that is my understanding. Its rare they will move on it as it is their rate for their work.

Just lay out your rate and stick to it. Companies will wiggle if the contractor is good as stated.

td2008

Just have a good idea of your worth - agencies can add 20% or so.

http://stelfox.ie/wp-content/uploads/2016/03/RESOURCES-Salary-Survey-2016-Contract.pdf

Check similar contracts on jobserve

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